New forecasts from the industry thinktank IGD reveal that the UK convenience market is set to grow by £6.9bn in the next five years, to reach £48.2bn by 2024. The channel will benefit from lots of new store openings over the period, helping to fuel a compound annual growth rate of 3.1%.
Patrick Mitchell-Fox, senior business analyst at IGD, said: “While we expect relatively muted store development across the sector as a whole in the next two years, with the sector undergoing a period of consolidation, we forecast key segments – in particular co-operatives, multiples and symbols – to benefit from strong store growth again from 2021.”
Reviewing the current year in convenience, Mitchell-Fox said: “Total convenience sales are expected to grow by 2.6% in 2019. This growth is being led by the co-operatives segment above all, driven not only by a focus on opening new stores, but also by outstanding like-for-like performance underpinned by strong private label development, better fresh and chilled ranges and more competitive value.
“Multiples, though still seeing solid growth, are now opening new stores at a more modest pace, targeting only those sites with the best potential.
“Meanwhile, after a year of slower growth, the symbols segment is beginning to pick-up again, though it remains restrained as it stabilises after a period of notable disruption and instability.”